May 12 (Bloomberg) -- Emerging-market stocks rose as
India’s benchmark gauge rallied the most in the world on
speculation the main opposition party will win elections. The
Ibovespa jumped as economists cut their Brazil inflation
forecasts.

Samsung Electronics Co. gained the most since August in
Seoul as its chairman was reported to be stable after a heart
attack. The Bank of New York Mellon India ADR Index surged to a
three-year high as exit polls released after the close in Mumbai
showed the alliance led by Narendra Modi poised to win the most
seats in a national election. Chinese technology shares rose on
bets the government will take steps to bolster equities.

The MSCI Emerging Markets Index climbed 0.9 percent to
1,015.82, the highest closing level since April 10. The S&P BSE
Sensex index has risen 13 percent since Sept. 13, when the
Bharatiya Janata Party named Modi its prime minister candidate.
China will relax foreign-investment limits in listed companies,
increase quotas for capital flow, and develop commodities
trading tools, the cabinet said May 9.

“There are strong hopes that if Modi becomes the next
prime minister, he will initiate new reforms to accelerate
growth,” said Hertta Alava, head of emerging markets at FIM
Asset Management Ltd. in Finland, which oversees the equivalent
of about $415 million in developing-nation assets. “Gains in
Chinese stocks are being driven by new comments about the
further opening up of capital markets.”

Stock Valuations

The developing-nation measure has increased 1.3 percent
this year and trades at 10.6 times projected 12-month earnings,
data compiled by Bloomberg show. The MSCI World Index has risen
2 percent in the period, and is valued at a multiple of 14.2.

All 10 industry groups in the emerging-markets gauge gained
today. Samsung jumped 4 percent. Chairman Lee Kun Hee had
surgery early yesterday after being resuscitated the previous
night, Rhee So Eui, a spokeswoman for Samsung Group, said in a
statement. Tencent Holdings Ltd., Asia’s largest Internet
company, soared 5.3 percent in Hong Kong, trimming its slump
since reaching a record on March 6 to 21 percent.

The Sensex rallied 2.4 percent to a record. The BJP and its
allies are estimated to have won 289 seats, compared with 101
for the Congress group, Bloomberg TV India reported, citing a
Cvoter exit poll. The BJP bloc probably won 261 to 283 seats,
according to an India Today exit poll, while the Congress-led
alliance won 110 to 120 seats. No margin of error was given for
either survey. Votes will be counted on May 16.

‘New Normal’

“Traders are positioning for the results day,” Aneesh
Srivastava, chief investment officer at IDBI Federal Life
Insurance Co., said by phone from Mumbai. “There’s an
expectation that a change in government will lead to improvement
in India’s macroeconomic fundamentals.”

The Ibovespa rallied 1.8 percent, the best performance
among major equity benchmarks in the Americas. Consumer prices
in Brazil will rise 6.39 percent this year, down from an
estimate of 6.50 percent a week earlier, according to the median
forecast of economists surveyed by the central bank.

The Hang Seng China Enterprises Index of mainland companies
listed in Hong Kong climbed 1.5 percent and the Shanghai
Composite Index rallied 2.1 percent, the most since March 21.

Policy makers are seeking to support the stock, bond and
commodities markets as growth decelerates. President Xi Jinping
said the economy needs to adapt to a “new normal” on growth,
according to a state news report.